The competitiveness of interactive telemedicine with alternatives is directly related to the cost of telecommunications services and equipment. The Integrated Services Digital Network (ISDN) used in the majority of interactive telemedicine systems has proven expensive and inflexible, resulting in limited deployment. Rapidly expanding Internet Protocol (IP) networks and mass-produced videoconferencing appliances reduce telemedicine costs, but introduce problems with security and quality of service (QoS). IP networks and security devices have been designed for data transmission (e.g., e-mail), rather than for time-sensitive interactive audio-video. AZ Technology, Inc. has expertise in IP-based telescience, which is directly applicable to telemedicine. Internet 2 provides high bandwidth, reliability, and access to University of Alabama at Birmingham (UAB) medical facilities around the state to support a cost-effective telemedicine core network. Phase 1 will establish a testbed between a UAB-School of Medicine hub site and remote teleclinics for use in resolving security and QoS issues. Phase 2 will utilize Internet 2 and public Internet to perform teledermatology physician training and patient examinations. The long-term goal is to reach even the most rural areas of the state with the least access to medical care via the public Internet. Project success will accelerate deployment of telemedicine via broadband Internet.